Although ADRs are traded in the U.S. in dollars, foreign currency risk for the U. S. investor remains.

Name: Although ADRs are traded in the U.S. in dollars, foreign currency risk for the U. S. investor remains.
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Question

Quizplus · Accepted Answer

ADRs may be traded in U.S. dollars, but the underlying assets and dividends are in foreign currencies, which means that the investor is still exposed to foreign currency risk. Fluctuations in the exchange rate between the U.S. dollar and the foreign currency can impact the investor's returns.

Although ADRs Are Traded in the U